The Conveyancing Process Explained: What Buyers and Sellers Need to Know

Buying and selling a property is not an easy process, especially in a city like Dubai. In this process, there are always a few things that take time and require concentration from both sellers and buyers. If not handled correctly, the whole buying and selling process can be at risk. When you are selling or buying a property in Dubai, several steps need to be followed. For that purpose, you need someone trained and experienced on your side who can deal with government bodies, lenders, and developers and handle all the necessary procedures, requirements, processes, and policies. In this blog, we will explain what conveyancing is and how it works.

What is Conveyancing?

Conveyancing is the process of legally transferring property from one person to another. There are two stages involved in this process. The first stage is when both parties sign the contract, and the deal becomes final. The second stage is when the transfer of the property from one person to another is complete, and the buyer legally becomes the owner. 

The legal matters involved in conveyancing, such as various financial and administrative duties, are complex tasks that need to be handled correctly. So, the right conveyancer will help you avoid the pitfalls and potential risks in this process. Hiring a conveyancer in Dubai is extremely important to understand the real estate market and get the right advice throughout the process.

What are The Responsibilities of A Conveyancer?

The major responsibility of a conveyancer is to oversee the purchasing process. Most of the home buyers and sellers do not know the documentation, work, and details involved in the selling process. Whether you are buying or selling the property, there are a lot of legalities involved, which a conveyancer can help you navigate. The responsibilities of a conveyancer include:

• Preparation, review, and clarification of the legal documentation such as power of attorney (POA), memorandum of understanding (MOU), or contract of sale and purchase (SPA).
• Inspect the property and its title certificates, checking the easement, title type, and other related information.
• Calculate fees and taxes related to property purchase. 
• A conveyancer will deal with the financial institution or bank if the mortgage is involved in the property.
• Communicate with the facilities management company or developers on your behalf to get the NOC for the property transfer.
• Act as your power of attorney to represent your interests in front of other involved parties. 
• Handles the payment and completes the property transfer securely.

The Process of Conveyancing

When the buyer and seller decide on the basic terms and conditions and agree on the property transfer, the conveyancing starts. A real estate agent or representative of the seller will draft the contract according to the format given by the Dubai Land Department (DLD), in which conditions of sale, the terms of the deal, the transfer date, and any outstanding particulars are mentioned. In this part of the process, it is important to verify the property and check the rights of both parties to avoid any problems.

After that, both buyer and seller have to negotiate the terms of the draft contract, which is usually done under the supervision of a real estate agent. The contract will be finalised and signed by both parties after they agree on the terms and conditions of the deal.

If you are applying for a mortgage to buy the property, it must be mentioned in the contract. The completion of the contract depends on successfully getting a mortgage from the bank. But, if the mortgage is delayed, it can affect the transfer date of the property.

The buyer and seller must exchange the contracts after signing and cannot back out from the deal. Otherwise, it will become a financial loss, and the affected party must be compensated. The buyer must pay the seller or its representative 10% of the property price to secure the deal. If the buyer backs out, the seller will retain the deposit, and if the seller fails to comply, a compensation price must also be paid to the buyer.

On the transfer day, both parties must be present at the Registration Trustee Office of DLD. If a buyer or seller is unable to attend personally, they have the right to give Power of Attorney to a lawyer or conveyancer to represent them at the time of the transfer. The buyer has to hand over the payment to the trustee officer in the form of a manager cheque. 

After a successful transfer, the trustee officer will hand over the new title deed and keys to the buyer and a manager cheque to the seller. Having a conveyancer on your side will help ensure that there are no fraudulent activities and that the transfer is completed legally and in a timely manner.

Costs and Fees Associated with Conveyancing

The conveyancing process involves various costs and fees that buyers and sellers need to be aware of. Let's have a look at them.

• Legal fees of a conveyancer
• Registration fees for the transfer of ownership with the Dubai Land Department
• Government charges such as obtaining clearances, approvals, and no-objection certificates (NOCs)
• Buying property through a mortgage includes bank fees, such as application, valuation, and administrative fees.

The property transfer in Dubai can take up to 10 weeks. You cannot do anything to speed up the process. But if you have all the necessary documents in place, a ready pre-approval mortgage, and an expert conveyancer on your side, it will save you a valuable amount of time. If you are thinking about buying a house and looking for expert and trained conveyance professionals, contact us and get your work done without being stressed.